What are the federal income tax rates on investments?
What are the federal income tax rates? I’m talking about investments. I heard there’s one tax rates on savings account, a different tax rate on short term capital gains, a different tax rate on long term capital gains, another tax rate on dividends, and so on. Is there a chart somewhere that shows these rates so I can consider tax consequences of how I invest my money?
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September 7th, 2010 at 9:20 am
They are all taxed at the same rate…..your rate depending on your income. The IRS no longer treats long term / short term differently. All the accounts you asked about are just entered on the 1040 as equal additions to your income.
September 7th, 2010 at 9:37 am
Long term (+ 1 year) capital gains are taxed at 15%. Short term at your regular income tax rate. Qualified dividends at 15%.